ATO Interpretative Decision
ATO ID 2001/436 (Withdrawn)
Goods and Services Tax
GST and abaloneFOI status: may be released
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The ATO view on this issue is contained in the Food Industry Partnership Issues Register - Issue 24 - ingredients used for home brewing or wine making.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a food supplier, making a GST-free supply under section 38-2 of the A New Tax System (Goods & Services Tax) Act 1999 (GST Act), when it supplies abalone for human consumption?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies abalone for human consumption.
Facts
The entity is a food supplier. The entity sells abalone for human consumption to a processor and wholesaler.
An abalone is a mollusc.
The abalone is not supplied for consumption on the premises from which they are supplied.
The entity is registered for goods and services tax (GST).
Reasons for Decision
A supply of food is GST-free under section 38-2 of the GST Act, provided that it does not come within any of the exclusions listed in section 38-3 of the GST Act.
Food is defined in subsection 38-4(1) of the GST Act to include food for human consumption (whether or not requiring further processing or treatment) as stated in paragraph 38-4(1)(a) of the GST Act. However, the definition of food does not include live animals (other than crustaceans or molluscs) according to paragraph 38-4(1)(g) of the GST Act.
Abalones are molluscs and regardless of whether they are alive or dead, they are not excluded from being food by paragraph 38-4(1)(g). Therefore, abalone falls within the definition of food. Furthermore, none of the exclusions listed in section 38-3 of the GST Act apply.
Accordingly, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies abalone for human consumption.
Date of decision: 26 July 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-2
section 38-3
paragraph 38-4(1)
paragraph 38-4(1)(a)
paragraph 38-4(1)(g)
ATO ID 2001/437
Keywords
Goods & services tax
GST free
GST food
Food for human consumption
Live animals
ISSN: 1445-2782
| Date: | Version: | |
| 26 July 2001 | Original statement | |
| You are here | 16 September 2005 | Archived |